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The American empire is falling with the dollar
By Paul Craig RobertsOnline Journal Guest Writer
Nov 8, 2007, 01:00
The US dollar is still officially the world's reserve currency, but it cannot purchase the services of Brazilian super model Gisele Bundchen. Gisele required the $30 million she earned during thefirst half of this year to be paid in euros.Gisele is not alone in her forecast of the dollar's fate. The First Post (UK) reports that Jim Rogers,a former partner of billionaire George Soros, is selling his home and all possessions in order toconvert all his wealth into Chinese yuan.Meanwhile, American economists continue to preach that offshoring is good for the US economyand that Bush's war spending is keeping the economy going. The practitioners of supply anddemand have yet to figure out that the dollar's supply is sinking the dollar's price and along with itAmerican power.The macho super patriots who support the Bush regime still haven't caught on that USsuperpower status rests on the dollar being the reserve currency, not on a military unable tooccupy Baghdad. If the dollar were not the world currency, the US would have to earn enoughforeign currencies to pay for its 737 oversees bases, an impossibility considering America's $800billion trade deficit.When the dollar ceases to be the reserve currency, foreigners will cease to finance the US tradeand budget deficits, and the American Empire along with its wars will disappear overnight.Perhaps Bush will be able to get a World Bank loan, or maybe one from the "Chavez bank," tobring the troops home from Iraq and Afghanistan.Foreign leaders, observing that offshoring and war are accelerating America's relative economicdecline, no longer treat the US with the deference to which Washington is accustomed. Ecuador'spresident, Rafael Correa, recently refused Washington's demand to renew the lease on theManta air base in Ecuador. He told Washington that the US could have a base in Ecuador if Ecuador could have a military base in the US.When Venezuelan president Hugo Chavez addressed the UN, he crossed himself as he stood atthe podium. Referring to President Bush, Chavez said, "Yesterday the devil came here, and itsmells of sulfur still today." Bush, said Chavez, was standing "right here, talking as if he ownedthe world."In his state of the nation message last year, Russian president Vladimir Putin said that Bush'sblathering about democracy was nothing but a cloak for the pursuit of American self-interests atthe expense of other peoples. "We are aware what is going on in the world. Comrade wolf knowswhom to eat, and he eats without listening, and he's clearly not going to listen to anyone." In May2007, Putin criticized the neocon regime in Washington for "disrespect for human life" and "claimsto global exclusiveness, just as it was in the time of the Third Reich."Even America's British allies regard President Bush as a threat to world peace and the secondmost dangerous man alive. Bush is edged out in polls by Osama bin Laden, but is regarded asmore dangerous than Iran's demonized president and North Korea's Kim Jong-il.President Bush has achieved his dismal world standing despite spending $1.6 billion of hard-pressed Americans' tax money on public relations between 2003 and 2006.